Member Info for Daisan

We now have an almost in production diamond mine with a history of pulling out specials and a projected margin of 50% with a 25 year mine life valued at about £9m. It's the 'almost' bit that is causing the problem......

Actually looks like it is drifting back currently but it is all over the place so who knows!

You can still buy and sell quite freely here. Normally in these situations you get the market freezing regularly so one moment you can't buy and, more particularly, the next you can't sell. Very odd!

Shut down for a week resulting in more delays, reduced revenue, etc., etc. Beginning to look either accident prone or..... I am not one for conspiracy theories but this incident looks somewhat odd. Needless to say there has been a knee jerk reaction in the share price but who can blame them. Now looking to me more likely that someone wants to take this out on the cheap. Disappointing. Again!

I have a feeling that the concert party will launch a takeover bid earlier than most people believe. Currently they are happy to collect at what they feel are low prices as any takeover bid is likely to require a more significant number. But ultimately the market (which is a bit thick) will notice the movement and the reasons behind it and force their hands. I would not be surprised to see them move in the winter to give them the opportunity of making progress while they can in 2017. I also think that this takeover will be pitched well north of 10p now.

It was good to see that they could still reduce the net debt position despite the relatively low production numbers. Next quarter should see a much better result and it wouldn't surprise me if debt was reduced $20m over the year. They are well positioned in Azerbaijan to look for further opportunities. Their existing properties are quite prospective, however, so I would expect further exploration/development in this area before aggressively looking for further assets. Gold is set to be supportive over the next few years. There is still a chance that it could drop to $1000/oz as technically it hasn't yet broken the 2011 downtrend. But the future looks very rosy indeed and I would foresee them being in a position to explore current assets, seek additional ones and start returning cash to shareholders at the same time. Debt should be gone within the next couple of years.

They are going out to India this week I believe. The best thing they could do, in my opinion, is sell their stake in GMSI. They are only going to be diluted further in this and their minority holding gives them no control over activity. Combine this with a partner who is willing to invest (and, perhaps, willing to buy out their holding) and a Government that seems to be in a state of paralysis when it comes to doing anything, it would seem like a good opportunity to move forward from the past and use the cash to invest in this new opportunity/other potential opportunities in the area (not a great fan of small companies being too geographically spread). And £3m additional in cash is better than a notional NAV.

Any reason why 10p OLI12? Because it is a 52 week high and would indicate a breakout?

Well, more relevant is its strength against the (even more) plunging rand but I get the point. Actually, it is slightly more complicated than that as a strengthening dollar puts pressure on commodity prices so there is likely to be downwards pressure on the price of diamonds in dollars, although the price of gold has held up reasonably well in the face of dollar strength so there is hope for diamonds which have, to some extent, the same 'safe haven' appeal. All factors considered, from a profitability standpoint this is probably working out as a net positive currently to DCP. So, as you say, a bright star in the firmament.

I think that there is a little interest but given the nature of the situation it is nothing short of stupefying that people aren't grabbing the opportunity. Labro may be moving cautiously but they have bought from a low of 5.25p to 8.5p in the last couple of weeks so it is not as if they aren't willing to go higher. If they keep buying up to the additional 19.8m shares, and I have no reason to believe that they won't, then this is likely to be at least double the current price. Their latest buys put a floor under the price of 8.5p. When are people going to realise the opportunity? AIM investors are curious beasts.

Moved up initially and back down. Not sure whether people understand the significance. The new CEO has clearly shifted the strategy and is delivering on it. A move away from the moribund Indian direction was the right call and you have to take your hat off to him. It looks like the next few months should see some interesting movement.

Sorry. I couldn't resist. But you have to say that the grades are decent in this over reasonable widths. No resource currently so it is a bit of a gamble but worth a punt by Kolar.

OK, I was looking for 17-17.5k oz but it looks like we got 16.5k oz so somewhat worse than I thought, but it does look as though the issue has been resolved and they seem positive about producing at least 19k+ oz in Q4 to meet their targets. The production shortfall was offset somewhat by the positive gold price and this meant that they still managed to improve their cash position by over $3m.

On the face of it, this looks to be a deal with decent potential. The width and grade intercepts are good (note Troajan) and the buy in does not look horrendously expensive. The one caveat is the 'innovative' say in which they want to carry out additional drilling - by processing bulk material as part of the exploration programme. I don't recall seeing this recently and it could pay off as it would avoid dilution. However, it could also back fire and result in a funding shortfall. That aside, the deal looks to have potential and the new CEO has clearly brought this to the table. I would suggest they focus on this and back away from the Indian operations which have delivered nothing for years. They can still keep their 20% stake in the gold asset. It will be diluted but at least they get a free carry.

Pretty much sums up my position jaf1948.

Well, I suspect that people freaked over the term 'going concern'. This is a very good reason why you don't put more than a limited percentage in any one share. If your entire portfolio was in DCP a month ago you are now sitting on a 60%+ loss which most would feel disappointed with.

Since the dip a couple of weeks ago when gold fell sharply this has made great progress (share price wise) despite gold not recovering. We are now at two and a half year highs, presumably in anticipation of the October report which we all know is going to be somewhat lower than hoped. Whilst the company is clearly undervalued relative to its peers (ASA, for example, is now over twice the market capitalisation), I am not sure whether this explains the rise here. I am sure that it will all become clear soon. I consider this to be a core holding so am not selling irrespective of the rise.

Just amazed that people can't see this. They are moving slowly in the market but moving they are so the underpinnings here reduce the downside risk enormously. And yet people are taking any slight tick up as a cue to offload.

We're all doomed!

Buying at 8.78 now and there have been 100k trades (not all buys) apart from the UT. Ticked up to 8.75/8.87 by the looks of things.